Ashok Leyland is riding multiple tailwinds at once viz-a-viz a sharp uptick in exports led by the GCC, a strong domestic CV cycle driven by freight demand and fleet replacement and an expanding electric bus strategy that now includes a potential manufacturing footprint in Indonesia.

Speaking on the sidelines of the company’s Q3FY26 results announcement, Executive Chairman Dheeraj Hinduja and Chief Executive Officer Shenu Agarwal detailed how the company’s international operations, EV roadmap, new product launches and capex programme are aligning to position the CV maker for sustained growth into FY27.

Hinduja highlighted that exports have been extremely good this year with particularly strong traction from Saudi Arabia and the UAE.

“The Saudi market and the UAE market continue to be very strong. We have developed products that are very suitable for these economies and our Ras Al Khaimah plant is working nearly at full capacity,” he said.

The GCC markets are now a key growth engine within Ashok Leyland’s international portfolio and overall overseas operations are expected to close the year on a robust note. The near-full utilisation at the facility underlines not only demand strength but also the company’s increasing localisation and relevance in these markets.

Furthermore, a recent MOU with PT Pindad in Indonesia marks Ashok Leyland’s intent to deepen its presence in Southeast Asia. Hinduja noted that the agreement was signed only last week and is aimed at building a much larger footprint in a sizeable market.

“This opportunity allows us to not only focus on electric buses but also on defence products,” he said, indicating that the partnership has a wider scope than just EV mobility.

While still in early stages, the understanding is that the collaboration could evolve into local manufacturing of vehicles in Indonesia for the domestic market, strengthening Ashok Leyland’s ASEAN presence while aligning with local industrial priorities. “We see good opportunities going forward in the Indonesian market,” Hinduja added.

Promising Q1FY27

On the near-term outlook, Hinduja said the momentum seen from Q1 through Q3 has continued into Q4. “The current quarter is looking very good. We have seen steady growth from Q1, Q2 and Q3, and this current quarter is also looking very strong,” he said, citing CRISIL estimates that suggest the company could close the year with overall growth of 10–12 percent.

Looking ahead, while Q1 is traditionally softer for the industry, the company is seeing encouraging signs. “Generally, Q1 is slightly slower than the rest of the year but at the moment the indications of Q1 are also very good,” he noted.

This optimism is underpinned by what the company believes is not a temporary spike but the start of a sustained replacement-led demand cycle. Agarwal pointed to January’s industry data, where the MHCV segment grew around 27 percent and LCVs over 20 percent as evidence of structural demand.

“We do believe that this is not a short-term blip because of GST. This is a result of overall growth in the consumption economy, which is leading to higher freight demand and higher freight rates,” he said. India’s truck fleet age is currently at an all-time high and the improved freight environment appears to have triggered a long-awaited replacement cycle.

“If the industry was waiting for some kind of a trigger to start this new replacement cycle, we believe that has now happened, and therefore it will go for a longer run,” Agarwal said. A major part of Ashok Leyland’s MHCV strategy lies in the launch of Hippo and Taurus, developed over the past couple of years.

“These products truly represent best-in-class performance and reliability,” Agarwal said. Both trucks deliver peak torque of around 1,600 Nm, among the best in the category and use upgraded driveline aggregates to improve reliability in tough applications such as tippers.

On the tractor side, the focus is on improving turnaround time for customers through higher power and heavy-duty aggregates. “The whole range will be launched between now and April and thereafter we will use the full potential of these products,” he added.

EV demand rising

Despite reports of a slowdown in staff and school bus segments, Ashok Leyland says its order book remains strong across both conventional and electric buses. “Our bus order book is very healthy and very strong at the moment,” Hinduja said.

He noted that the new Lucknow greenfield plant, completed in a record 14 months, has come at the right time to support increased bus demand. The plant is primarily focused on EVs, with phase one capacity of 2,500 units, scalable to 5,000 units.

Agarwal attributed recent industry blips in bus growth to timing issues in STU orders rather than any fundamental demand weakness. “The sentiment is very, very positive even in the staff and school sectors,” he said. Agarwal emphasised that electrification will not be uniform across segments.

“Buses are seeing a huge spike in government purchases. We are very, very optimistic about the electric bus business,” he said. Switch, the company’s EV arm, is fully ready with products for India and overseas markets. A manufacturing base for EV buses is also being set up at the RAK plant, expected to be operational in about 12 months.

Electrification is also expected to gain traction in the 2–4 tonne and intermediate CV categories, where Ashok Leyland was among the first to launch electric offerings. While Ashok Leyland did not directly win tenders in the last 10,000-bus PM e-Bus Sewa round, Switch secured significant orders through an infrastructure partner. Both entities plan to participate in upcoming tenders.

The government’s plan to induct over 50,000 electric buses into STU fleets over the next four to five years is seen as a major opportunity. Switch has already exported EV buses to Mauritius and received an order for 45 buses from Bhutan, underlining its growing international footprint.

Market segments

The company acknowledged some commodity cost pressure in recent months, driven not by steel but by spikes in certain precious metals. This has pushed up Q3 material costs sequentially.

Hinduja expects this pressure to ease within three to four months. Meanwhile, the company is doubling down on efficiency, waste reduction and cost control. Ashok Leyland will close the year with capex of around INR 10–11 billion and plans to invest about INR 10 billion annually over the next two years towards its Centre of Excellence and factory projects.

Agarwal said the company has also consciously grown non-domestic CV businesses including industrial engines, power solutions, defence and spares to reduce dependence on domestic MHCV volumes. “This reduces our break-even point from MHCV domestic sales and gives a lot of strength to the company for future growth,” he said.

Despite being a late entrant in LCVs, Ashok Leyland now holds around 12 percent market share and insists it will not chase growth through discounting. “Our industry is basically TCO-focused. If the customer sees extra value, there is no hesitation in paying more,” Agarwal said, pointing to digitisation, AI-led service initiatives, reliability and turnaround time as key differentiators.

For Ashok Leyland, the strategy is clear with differentiated products, strong service, rising exports, EV readiness and a favourable domestic cycle, all converging as it prepares for the next phase of commercial vehicle growth.

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Mitsubishi Fuso Truck and Bus Corporation has opened a new centre of competence in Chennai called the Fuso Technical Centre India. The development reflects the passion to drive the Fuso brand of commercial vehicles to new heights post the global development of separation of Fuso brand from the Daimler brand. Mitsubishi Fuso and Toyota’ Hino are now under Archion brand, which was announced in mid-2025. Archion as a separate entity – a new Japanese holding company formed by the merger of Daimler Truck's Mitsubishi Fuso and Toyota's Hino Motors – is set to launch on 1 April 2026. 
The development also reflects the role of the Chennai facility of Daimler India Commercial Vehicles in nurturing the Fuso brand since 2013. The facility has produced Fuso brand of commercial vehicles besides three other brands (BharatBenz, Freightliner and Mercedes-Benz) since 2013.  Against this backdrop, the new Fuso tech centre in Chennai has come up on a tight schedule and will have hundreds of new engineers among others. 
If this would beg to ask how the arrangement will be in the future and whether Fuso trucks will continue to be made in the Chennai facility, which is essentially a Daimer Trucks property, the fact is, the connection of Fuso trucks goes a long way with India and its commercial vehicle market. 
Since 2013, the Daimler Oragadam facility on the outskirts of Chennai has produced Fuso trucks for 100 percent export. It has been instrumental in changing the image of the Japanese commercial brand from one that would make light vehicles to the one that makes heavy-duty ones. 
 

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American commercial vehicle manufacturer Mack Trucks has revealed the redesigned Mack Granite at the Las Vegas Motor Speedway. The vocational truck features a new cab, updated safety technology and a shift in performance specifications ahead of its display at ConExpo-Con/Agg 2026.

The Granite introduces the Mack Protect safety suite, incorporating front camera and radar with 270-degree coverage. It is the first vocational truck to include radar systems on both the driver and passenger sides.

It features an electronic park brake with rollaway protection and automatic release. A standard system that contacts emergency services upon airbag deployment or rollover detection. Support for up to five camera inputs and an optional digital mirror system. It gets standard front and available side-curtain airbags.

The model is powered by the new Mack MP13 engine, producing up to 540 HP and 1,950 lbft of torque. Mack reports a 3 percent improvement in fuel efficiency over previous versions. The updated mDRIVE automated manual transmission offers 30 percent faster shifts and is available in 12-speed, 13-speed and 14-speed configurations.

Alternatively, customers can specify a Cummins X10 engine paired with an Allison automatic transmission. The truck utilises the MaxRide air load-distributing suspension, a proprietary eight-bag system designed for load management.

The galvanised steel cab is nine inches wider at the B-pillar than the previous model. It features a bonded curved windshield and meets Swedish Impact (BOF10) safety standards.

Interior updates include:

• Ergonomics: A flat-bottom steering wheel and steering column-mounted shifter.
• Displays: A digital instrument cluster and a three-way adjustable steering column.
• Utility: A bodybuilder tower between seats for control mounting and a t-slot dashboard for device attachment.
• Comfort: HVAC ducting in the door panels to deliver air at the driver's shoulder level.

The Granite will be produced at the Lehigh Valley Operations facility in Pennsylvania. Orders are scheduled to open in the second half of 2026, with production commencing in January 2027.

Stephen Roy, President, Mack Trucks, said, “The all-new Mack Granite embodies everything Mack stands for: legendary durability, uncompromising performance and a commitment to our customers who depend on these trucks to get the toughest jobs done. We’ve completely reimagined the Granite from the ground up, bringing the same level of innovation we delivered with our Pioneer and Anthem models to the vocational market.”

Alex Lee, Senior Product Manager, Mack Trucks, stated, “We’re bringing safety technologies to the North American vocational market that have never been available before. Features like the ePark Brake, 270-degree radar coverage and E911 auto-call are going to make a real difference in protecting drivers who work in some of the most challenging environments.”

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Caterpillar, a leading manufacturer of construction and mining equipment, has announced new technology, service solutions and products at CONEXPO-CON/AGG 2026 aimed at productivity, safety and labour shortages. The company is demonstrating a single platform to connect operations through AI and autonomy.

The American company is showcasing the Cat AI Assistant, designed to help teams reach decisions via recommendations and data interaction. The company also debuted its first autonomous soil compactor, the Cat CS12 and Collision Mitigation technology within the Cat Detect portfolio.

Key technological integrations include:

• Fleet Management: A collaboration with Geotab Inc. integrates on-highway data into the VisionLink platform, allowing management of both Cat and non-Cat assets.
• Remote Operation: Live demonstrations are featuring advancements in construction autonomy and remote equipment control.
• Power Solutions: Displayed units include high-horsepower C3.6 and C13D engines alongside connectivity tools for condition monitoring.

The company launched Cat Compact, a destination for small contractors to buy, rent and service equipment. Additionally, a refreshed Cat Rentals brand and digital solution have been introduced to assist customers in monitoring scaled equipment operations.

Caterpillar has updated its service commitments to include next-day parts and two-day repairs, supported by Cat Credits if these targets are not met.

The event serves as the venue for the Global Operator Challenge finals and the inaugural Global Dealer Technician Challenge, recognising the skills of equipment professionals.

Joe Creed, CEO, Caterpillar, said, “As jobsites become more complex, we’re rapidly innovating to simplify how our customers operate and grow – at any scale. This week, we’re demonstrating how a single platform connects the entire operation – empowering customers with AI and autonomy, redefining service and investing in the people doing the work every day.”

Rod Shurman, Caterpillar Construction Industries Group President, said, “Caterpillar is focused on the challenges customers are dealing with right now: labour, safety and productivity. From AI and autonomy in action to full-fleet connectivity to services commitments, everything we’re showing is built to work where and when customers need it most whether it's on the job, in the shop or at the office.”

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Switch Mobility, the electric vehicle arm of Ashok Leyland and part of the Hinduja Group, has announced the deployment of its Switch EiV 22 electric double-decker bus for the ‘Dekho Meri Dilli’ sightseeing route in the capital. The initiative is being implemented under the Hinduja Group’s Corporate Social Responsibility (CSR) programme.

The service provides residents and tourists with a zero-emission transport option to visit heritage landmarks. The full-day route begins at Dilli Haat – INA and includes stops at Vijay Chowk, Rashtrapati Bhavan, the National Museum, the National Gallery of Modern Art, the Pradhan Mantri Sangrahalya and the National War Memorial at India Gate.

The Switch EiV 22 is a standard-floor, air-conditioned electric double-decker designed and manufactured in India. The vehicle utilises a lightweight aluminium body and features a rear staircase and a wide rear door for passenger access.

Key technical features include:

• Battery: 231 kWh NMC (Nickel Manganese Cobalt) chemistry battery pack.
• Range: Up to 250 km on a single charge.
• Architecture: 650V system with a dual-gun charging setup.
• Capacity: Seating for 65 passengers.
• Cooling: Liquid-cooled battery technology for thermal management.

The bus components are manufactured domestically to comply with FAME II standards. Switch Mobility currently operates electric double-deckers in Mumbai, Ahmedabad, Bhubaneswar and Kerala, with a total of 100 electric tourist buses operational across 10 locations in India.

Dheeraj Hinduja, Chairman, Ashok Leyland, said, “The double-decker bus has always held a special place in India’s public transport story – it is an icon of belonging, of shared journeys, and of city life. Through this CSR initiative, we are proud to breathe new life into that legacy, right in the heart of our national capital. The ‘Dekho Meri Dilli’ experience is our way of giving back to the communities we serve – offering people a beautiful, emission-free way to rediscover Delhi’s magnificent heritage. At SWITCH Mobility, backed by Ashok Leyland’s strong mobility foundation, we are committed to advancing green mobility not just as a business proposition, but as a responsibility to society and the environment.”

Ganesh Mani, CEO – Switch Mobility and COO – Ashok Leyland, said, “The Hinduja Group has always believed that progress must be purposeful – that growth and giving back must go hand in hand. We are not just offering a ride; we are offering a renewed connection to our history, our culture, and our shared pride as Indians – all while treading lightly on our planet. We are proud to see the Switch EiV 22 carry not just passengers, but the spirit of a greener, more purposeful India — one landmark, one journey at a time. Switch Mobility's electric-first vision, backed by the scale and strength of Ashok Leyland, makes moments like these possible — where innovation is not just future-ready, but people-ready.

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